Tosh profit plummets by 89 per cent

US division records operating loss

A year ago From The Register, a year ago Another Japanese giant has turned in poor financial results, with Toshiba announcing a drop of profits by 90 per cent. Last Friday, Fujitsu reported a similar decline in figures. Toshiba said that its net profit droped by nearly 90 per cent for its latest financial year to 7.34 billion yen on sales of 5.458 billion yen. The drop in profitability is similar to Fujitsu’s and Toshiba cited similar reasons. It said sales of chips, PCs and its consumer products fell but unlike Fujitsu, sales in the North American region were disappointing. Its North American division reported an operating loss for the financial year. Although senior Toshiba executives in Japan forecast a return to profitability in its coming financial year, the news, coupled with Fujitsu’s earlier results, are set to cause further blips in the PC market. According to reports, Toshiba America was hard hit by the increase in the sub-$1,000 market and will now take steps to address that sector. In the UK, Toshiba is best known for its range of notebook PCs, which hold dominant market position here, but its Equium desktop has so far made little progress in a tough market. ®

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